The Biden-Harris administration’s new export restrictions on AI GPUs have drawn sharp criticism from Nvidia, a leading GPU manufacturer. These restrictions, outlined in the Interim Final Rule on Artificial Intelligence Diffusion, primarily target China and limit the export of high-performance AI chips. Nvidia argues that these measures will not improve U.S. security but rather hinder global competitiveness and stifle innovation.
The new regulations focus on large-scale AI chip orders, specifically those with a collective computational power equivalent to approximately 1,700 advanced GPUs. Nvidia points out that this threshold exempts the “overwhelming majority” of orders, including those for mainstream gaming PCs and consumer hardware. The company contends that controlling technology already widely available in consumer products will not effectively address security concerns.
Interestingly, 18 key U.S. allies, categorized as “tier-one” countries, are exempt from these restrictions. This list includes nations like Taiwan, Germany, Canada, Japan, the United Kingdom, and Norway. “Tier-three” countries, such as China, North Korea, Iran, and Russia, face the strictest limitations.
These interim restrictions won’t be enforceable for 120 days and won’t fully take effect for a year. Nvidia expressed its hope for a shift back to policies that promote American leadership under the incoming Trump administration, emphasizing innovation, competition, and global technology sharing.
The new rule also restricts the export of closed-weight AI models, which include proprietary weights and encompass models like GPT-4, the technology behind ChatGPT. However, the Biden administration has stated that open-weight models will remain unrestricted.
Given the short remaining time of the Biden-Harris administration and the 120-day period for public comment, the long-term viability of these AI restrictions is uncertain. Nvidia, meanwhile, maintains that these restrictions jeopardize global progress and praises the first Trump administration for establishing the foundation for America’s current AI strength. The company argues that innovation and global collaboration, not restrictive policies, are the keys to continued success in the field of AI.
Nvidia’s blog post strongly criticizes the current administration’s approach, stating that “global progress is now in jeopardy” and commending the prior Trump administration for laying “the foundation for America’s current strength and success in AI.” With a significant period for public comment and a change in administration imminent, the future of these AI export restrictions remains to be seen.
